E-commerce’s astromical growth over the last two years has also meant a skyrocketing number of fake and misleading reviews ending up in front of customers.
The Federal Trade Commission (FTC) announced earlier this year it will begin cracking down on these fake reviews, handing out $43,792 fines per violation. This crackdown highlights the need for vetted and trusted reviews and endorsements, something that Atlanta-based startup The Desire Company is bringing to consumers.
It just closed an $8 million Series A to do just that.
The $8 million Series A round was led by private investment firms Valor Equity Partners and Cleveland Avenue, LLC., both based in Chicago.
The funding brings the startup’s valuation to $78 million.
“Both Valor Equity Partners and Cleveland Ave, LLC have always been at the forefront of finding startups with potential and helping to turn them into huge, breakthrough companies — such as Tesla, SpaceX, Gopuff, Beyond Meat, and many more,” co-founder Eric Sheinkop told Hypepotamus. “They are always looking to bring entrepreneurs into the fold, providing incredible value with their hands-on guidance and access to their exclusive networks.”
The Desire Company looks to help consumers find trusted recommendations before making a final purchase decision. That might be expert product reviews, how-tos, and classes.
The startup has developed a library of over 4,000 videos with athletes, celebrity fitness trainers, licensed wellness experts, make-up artists, stylists, and dancers, and plans to expand those videos with the new funding.
The team said the platform’s videos can be found in BestBuy, Amazon, NewEgg, and Mashable, among others.
The funding will help the team open up new studio space in Chicago.
As the team continues to expand in Chicago, Sheinkop said that Atlanta’s place as a media and entertainment powerhouse, and the city’s “energy of an amazing startup community,” will continue to be part of The Desire Company’s growth moving forward. Sheinkop and his co-founder and his wife Judith Sheinkop will continue to be based in Atlanta.
“Our founders continue to be based in and grow our team out of Atlanta, which has the energy of an amazing startup community. Additionally, the transition in filming from Hollywood to Atlanta due to tax credits also means that Atlanta has high-quality talent and professionals available for production,” he added.